A lot of people think that International Business Machines Corp. (NYSE:IBM) might have taken the correct decision by partnering with Apple Inc. (NASDAQ:AAPL) in the enterprise segment.
Robert Nardelli, Founder of XLR-8 was on Bloomberg recently and he discussed how the strategic deal with Apple Inc. (NASDAQ:AAPL) would help International Business Machines Corp. (NYSE:IBM). He thinks that IBM is eyeing an opportunity to recover the declining revenue which has been the case for several consecutive quarters. He said that this deal gives IBM an opportunity to partner with a hi-tech company like Apple and it all makes sense.
He appreciated how International Business Machines Corp. (NYSE:IBM) has got rid of the computer business and all the other sluggish businesses that brought them down and according to him probably the opportunity to partner with Apple Inc. (NASDAQ:AAPL) would do a world of good to the company.
“I think you have to be able to multi task, you have to think strategically and act operationally every day. So you can’t just be focused on today without thinking about tomorrow. You either innovate or evaporate in today’s market place now.” Nardelli stated how IBM innovated.
He said that consultants bring in an outside perspective and they are not caught up in the legacy of the business. Moreover the consultants are part of variable workforce which doesn’t add to the fixed cost. Nardelli said that if his company would have consulted with International Business Machines Corp. (NYSE:IBM) now, he would have advised them to regenerate themselves and try to explore different way of revenue generation opportunities.
Warren Buffett’s Berkshire Hathaway is a major investor in International Business Machines Corp. (NYSE:IBM) with over 68.3 million shares as of march 31st 2014. The other key investors are Fisher Asset Management and Adage Capital Management with approximately 3.1 and 1.5 million shares respectively.